The Economic Costs of NIMBYism - Evidence From Renewable Energy Projects

Stephen Jarvis

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: Large infrastructure projects can create widespread societal benefits, but also fre- quently prompt strong local opposition. This is sometimes pejoratively labeled NIMBY (Not In My Backyard) behavior. In this paper I estimate the economic costs of NIMBYism and its role in local planning decisions. To do this I use de- tailed data on all major renewable energy projects proposed in the United Kingdom spanning three decades. First, I use hedonic methods to show that wind projects impose significant negative local costs, while solar projects do not. I then show that planning officials are particularly responsive to the local costs imposed within their jurisdictions, but fail to account for variation in these costs across jurisdic- tions. The result has been a systematic misallocation of investment, which may have increased the cost of deploying wind power by 10-29%. Much of this can be attributed to the fragmented and localized nature of the planning process.

Keywords: Infrastructure; Electricity; Renewables; NIMBY; Local; Planning (search for similar items in EconPapers)
JEL-codes: Q42 Q51 Q53 R30 (search for similar items in EconPapers)
Pages: 89
Date: 2021-06
New Economics Papers: this item is included in nep-ene, nep-env, nep-ppm and nep-ure
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Citations: View citations in EconPapers (10)

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Working Paper: The economic costs of NIMBYism: evidence from renewable energy projects (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2021_300

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